Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Air Products & Chemicals Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Federal	26,900)	163,700)	305,100)	62,800)	237,900)	176,100)
State	23,800)	23,300)	17,700)	7,000)	29,100)	16,800)
Foreign	262,700)	235,500)	256,900)	229,100)	256,600)	220,100)
Current tax provision	313,400)	422,500)	579,700)	298,900)	523,600)	413,000)
Federal	108,800)	9,700)	(121,700)	1,400)	42,200)	(3,500)
State	(3,600)	2,400)	12,500)	6,000)	3,600)	19,100)
Foreign	59,800)	45,500)	53,800)	(45,400)	17,100)	(12,700)
Deferred tax provision	165,000)	57,600)	(55,400)	(38,000)	62,900)	2,900)
Income tax provision	478,400)	480,100)	524,300)	260,900)	586,500)	415,900)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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Item	Description	The company
Current tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Air Products & Chemicals Inc. current tax provision decreased from 2018 to 2019 and from 2019 to 2020.
Deferred tax provision	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Air Products & Chemicals Inc. deferred tax provision increased from 2018 to 2019 and from 2019 to 2020.
Income tax provision	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Air Products & Chemicals Inc. income tax provision decreased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc., effective income tax rate (EITR) reconciliation

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
U.S. federal statutory tax rate	21.00%	21.00%	24.50%	35.00%	35.00%	35.00%
State taxes, net of federal benefit	0.60%	1.00%	1.00%	1.00%	1.10%	1.00%
Income from equity affiliates	-2.30%	-2.00%	-2.10%	-2.00%	-2.40%	-3.00%
Foreign tax differentials	0.10%	1.00%	-1.00%	-7.90%	-7.00%	-6.60%
Tax on foreign repatriated earnings	0.90%	0.10%	-0.40%	-2.20%	-2.30%	-1.60%
Share-based compensation	-0.80%	-0.60%	-1.00%	-1.20%	0.00%	0.00%
Tax restructuring benefit	0.00%	0.00%	-1.80%	0.00%	0.00%	0.00%
Domestic production activities	0.00%	0.00%	-0.40%	-0.80%	-0.80%	-0.90%
Non-deductible goodwill impairment charge	0.00%	0.00%	0.00%	3.60%	0.00%	0.00%
Non-U.S. subsidiary tax election	0.00%	0.00%	0.00%	-7.70%	0.00%	0.00%
Business separation costs	0.00%	0.00%	0.00%	0.20%	3.10%	0.00%
Other	0.20%	-1.40%	-1.20%	0.40%	0.80%	0.10%
Effective tax rate, before tax reform	19.70%	19.10%	17.60%	18.40%	27.50%	24.00%
Tax reform repatriation	0.00%	1.90%	19.50%	0.00%	0.00%	0.00%
Tax reform rate change and other	0.00%	0.00%	-11.10%	0.00%	0.00%	0.00%
Effective tax rate	19.70%	21.00%	26.00%	18.40%	27.50%	24.00%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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Item	Description	The company
Effective tax rate, before tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Air Products & Chemicals Inc. effective tax rate, before tax reform increased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc., components of deferred tax assets and liabilities

US$ in thousands

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Retirement benefits and compensation accruals	209,000)	227,100)	153,100)	370,100)	537,900)	468,700)
Tax loss carryforwards	112,600)	140,600)	143,500)	64,500)	93,000)	116,700)
Tax credits and other tax carryforwards	40,300)	31,100)	17,100)	76,100)	56,000)	43,800)
Reserves and accruals	67,000)	69,600)	42,500)	88,200)	80,100)	71,900)
Partnership and other investments	—)	—)	—)	—)	4,800)	—)
Currency losses	30,400)	—)	3,800)	20,700)	—)	—)
Other	64,600)	57,700)	45,400)	37,200)	45,800)	57,300)
Gross deferred tax assets	523,900)	526,100)	405,400)	656,800)	817,600)	758,400)
Valuation allowance	(95,000)	(92,100)	(105,000)	(107,700)	(155,200)	(103,600)
Net deferred tax assets	428,900)	434,000)	300,400)	549,100)	662,400)	654,800)
Plant and equipment	(1,110,900)	(954,600)	(811,800)	(1,035,600)	(1,034,800)	(1,124,600)
Currency gains	—)	(23,900)	—)	—)	(46,400)	(65,700)
Unremitted earnings of foreign entities	(58,700)	(31,000)	(36,100)	(20,900)	(5,400)	(34,300)
Partnership and other investments	(19,300)	(14,800)	(16,300)	(5,400)	—)	—)
Intangible assets	(83,600)	(80,000)	(84,300)	(81,900)	(134,100)	(135,600)
Other	(3,900)	(8,300)	(5,600)	(9,200)	(16,100)	(15,300)
Deferred tax liabilities	(1,276,400)	(1,112,600)	(954,100)	(1,153,000)	(1,236,800)	(1,375,500)
Net deferred income tax asset (liability)	(847,500)	(678,600)	(653,700)	(603,900)	(574,400)	(720,700)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Air Products & Chemicals Inc. gross deferred tax assets increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Air Products & Chemicals Inc. net deferred tax assets increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Net deferred income tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Air Products & Chemicals Inc. net deferred income tax asset (liability) decreased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc., deferred tax assets and liabilities, classification

US$ in thousands

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Current deferred tax assets (included in Other receivables and current assets)	—)	—)	—)	—)	—)	117,200)
Noncurrent deferred tax assets (included in Other noncurrent assets)	115,100)	115,200)	121,400)	174,500)	192,700)	69,000)
Current deferred tax liabilities (included in Payables and accrued liabilities)	—)	—)	—)	—)	—)	3,600)
Noncurrent deferred tax liabilities	962,600)	793,800)	775,100)	778,400)	767,100)	903,300)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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Item	Description	The company
Noncurrent deferred tax assets (included in Other noncurrent assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Air Products & Chemicals Inc. noncurrent deferred tax assets (included in Other noncurrent assets) decreased from 2018 to 2019 and from 2019 to 2020.
Noncurrent deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Air Products & Chemicals Inc. noncurrent deferred tax liabilities increased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc., adjustments to financial statements

US$ in thousands

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Adjustment to Current Assets
Current assets (as reported)	8,684,900)	4,618,300)	5,082,200)	5,876,700)	4,317,300)	2,910,800)
Less: Current deferred tax assets, net	—)	—)	—)	—)	—)	117,200)
Current assets (adjusted)	8,684,900)	4,618,300)	5,082,200)	5,876,700)	4,317,300)	2,793,600)
Adjustment to Total Assets
Total assets (as reported)	25,168,500)	18,942,800)	19,178,300)	18,467,200)	18,055,300)	17,438,100)
Less: Current deferred tax assets, net	—)	—)	—)	—)	—)	117,200)
Less: Noncurrent deferred tax assets, net	115,100)	115,200)	121,400)	174,500)	192,700)	69,000)
Total assets (adjusted)	25,053,400)	18,827,600)	19,056,900)	18,292,700)	17,862,600)	17,251,900)
Adjustment to Current Liabilities
Current liabilities (as reported)	2,416,700)	1,820,900)	2,338,300)	2,489,000)	3,283,300)	3,648,100)
Less: Current deferred tax liabilities, net	—)	—)	—)	—)	—)	3,600)
Current liabilities (adjusted)	2,416,700)	1,820,900)	2,338,300)	2,489,000)	3,283,300)	3,644,500)
Adjustment to Total Liabilities
Total liabilities (as reported)	12,725,400)	7,554,500)	8,002,000)	8,281,700)	10,841,900)	10,057,000)
Less: Current deferred tax liabilities, net	—)	—)	—)	—)	—)	3,600)
Less: Noncurrent deferred tax liabilities, net	962,600)	793,800)	775,100)	778,400)	767,100)	903,300)
Total liabilities (adjusted)	11,762,800)	6,760,700)	7,226,900)	7,503,300)	10,074,800)	9,150,100)
Adjustment to Total Air Products Shareholders’ Equity
Total Air Products shareholders’ equity (as reported)	12,079,800)	11,053,600)	10,857,500)	10,086,200)	7,079,600)	7,249,000)
Less: Net deferred tax assets (liabilities)	(847,500)	(678,600)	(653,700)	(603,900)	(574,400)	(720,700)
Total Air Products shareholders’ equity (adjusted)	12,927,300)	11,732,200)	11,511,200)	10,690,100)	7,654,000)	7,969,700)
Adjustment to Net Income Attributable To Air Products
Net income attributable to Air Products (as reported)	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Add: Deferred income tax expense (benefit)	165,000)	57,600)	(55,400)	(38,000)	62,900)	2,900)
Net income attributable to Air Products (adjusted)	2,051,700)	1,817,600)	1,442,400)	2,962,400)	694,000)	1,280,800)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

Air Products & Chemicals Inc., Financial Data: Reported vs. Adjusted

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Air Products & Chemicals Inc., adjusted financial ratios

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Current Ratio
Reported current ratio	3.59	2.54	2.17	2.36	1.31	0.80
Adjusted current ratio	3.59	2.54	2.17	2.36	1.31	0.77
Net Profit Margin
Reported net profit margin	21.30%	19.73%	16.77%	36.65%	6.63%	12.91%
Adjusted net profit margin	23.17%	20.38%	16.15%	36.18%	7.29%	12.94%
Total Asset Turnover
Reported total asset turnover	0.35	0.47	0.47	0.44	0.53	0.57
Adjusted total asset turnover	0.35	0.47	0.47	0.45	0.53	0.57
Financial Leverage
Reported financial leverage	2.08	1.71	1.77	1.83	2.55	2.41
Adjusted financial leverage	1.94	1.60	1.66	1.71	2.33	2.16
Return on Equity (ROE)
Reported ROE	15.62%	15.92%	13.80%	29.75%	8.91%	17.63%
Adjusted ROE	15.87%	15.49%	12.53%	27.71%	9.07%	16.07%
Return on Assets (ROA)
Reported ROA	7.50%	9.29%	7.81%	16.25%	3.50%	7.33%
Adjusted ROA	8.19%	9.65%	7.57%	16.19%	3.89%	7.42%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Air Products & Chemicals Inc. adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Air Products & Chemicals Inc. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Air Products & Chemicals Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Air Products & Chemicals Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Air Products & Chemicals Inc. adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Air Products & Chemicals Inc. adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Air Products & Chemicals Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Current assets	8,684,900)	4,618,300)	5,082,200)	5,876,700)	4,317,300)	2,910,800)
Current liabilities	2,416,700)	1,820,900)	2,338,300)	2,489,000)	3,283,300)	3,648,100)
Liquidity Ratio
Current ratio¹	3.59	2.54	2.17	2.36	1.31	0.80
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted current assets	8,684,900)	4,618,300)	5,082,200)	5,876,700)	4,317,300)	2,793,600)
Adjusted current liabilities	2,416,700)	1,820,900)	2,338,300)	2,489,000)	3,283,300)	3,644,500)
Liquidity Ratio
Adjusted current ratio²	3.59	2.54	2.17	2.36	1.31	0.77

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 8,684,900 ÷ 2,416,700 = 3.59

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 8,684,900 ÷ 2,416,700 = 3.59

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Air Products & Chemicals Inc. adjusted current ratio improved from 2018 to 2019 and from 2019 to 2020.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Sales	8,856,300)	8,918,900)	8,930,200)	8,187,600)	9,524,400)	9,894,900)
Profitability Ratio
Net profit margin¹	21.30%	19.73%	16.77%	36.65%	6.63%	12.91%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products	2,051,700)	1,817,600)	1,442,400)	2,962,400)	694,000)	1,280,800)
Sales	8,856,300)	8,918,900)	8,930,200)	8,187,600)	9,524,400)	9,894,900)
Profitability Ratio
Adjusted net profit margin²	23.17%	20.38%	16.15%	36.18%	7.29%	12.94%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ Net profit margin = 100 × Net income attributable to Air Products ÷ Sales
= 100 × 1,886,700 ÷ 8,856,300 = 21.30%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Air Products ÷ Sales
= 100 × 2,051,700 ÷ 8,856,300 = 23.17%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Air Products & Chemicals Inc. adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Sales	8,856,300)	8,918,900)	8,930,200)	8,187,600)	9,524,400)	9,894,900)
Total assets	25,168,500)	18,942,800)	19,178,300)	18,467,200)	18,055,300)	17,438,100)
Activity Ratio
Total asset turnover¹	0.35	0.47	0.47	0.44	0.53	0.57
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Sales	8,856,300)	8,918,900)	8,930,200)	8,187,600)	9,524,400)	9,894,900)
Adjusted total assets	25,053,400)	18,827,600)	19,056,900)	18,292,700)	17,862,600)	17,251,900)
Activity Ratio
Adjusted total asset turnover²	0.35	0.47	0.47	0.45	0.53	0.57

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ Total asset turnover = Sales ÷ Total assets
= 8,856,300 ÷ 25,168,500 = 0.35

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 8,856,300 ÷ 25,053,400 = 0.35

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Air Products & Chemicals Inc. adjusted total asset turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets	25,168,500)	18,942,800)	19,178,300)	18,467,200)	18,055,300)	17,438,100)
Total Air Products shareholders’ equity	12,079,800)	11,053,600)	10,857,500)	10,086,200)	7,079,600)	7,249,000)
Solvency Ratio
Financial leverage¹	2.08	1.71	1.77	1.83	2.55	2.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	25,053,400)	18,827,600)	19,056,900)	18,292,700)	17,862,600)	17,251,900)
Adjusted total Air Products shareholders’ equity	12,927,300)	11,732,200)	11,511,200)	10,690,100)	7,654,000)	7,969,700)
Solvency Ratio
Adjusted financial leverage²	1.94	1.60	1.66	1.71	2.33	2.16

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ Financial leverage = Total assets ÷ Total Air Products shareholders’ equity
= 25,168,500 ÷ 12,079,800 = 2.08

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Air Products shareholders’ equity
= 25,053,400 ÷ 12,927,300 = 1.94

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Air Products & Chemicals Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Total Air Products shareholders’ equity	12,079,800)	11,053,600)	10,857,500)	10,086,200)	7,079,600)	7,249,000)
Profitability Ratio
ROE¹	15.62%	15.92%	13.80%	29.75%	8.91%	17.63%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products	2,051,700)	1,817,600)	1,442,400)	2,962,400)	694,000)	1,280,800)
Adjusted total Air Products shareholders’ equity	12,927,300)	11,732,200)	11,511,200)	10,690,100)	7,654,000)	7,969,700)
Profitability Ratio
Adjusted ROE²	15.87%	15.49%	12.53%	27.71%	9.07%	16.07%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ ROE = 100 × Net income attributable to Air Products ÷ Total Air Products shareholders’ equity
= 100 × 1,886,700 ÷ 12,079,800 = 15.62%

² Adjusted ROE = 100 × Adjusted net income attributable to Air Products ÷ Adjusted total Air Products shareholders’ equity
= 100 × 2,051,700 ÷ 12,927,300 = 15.87%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Air Products & Chemicals Inc. adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Total assets	25,168,500)	18,942,800)	19,178,300)	18,467,200)	18,055,300)	17,438,100)
Profitability Ratio
ROA¹	7.50%	9.29%	7.81%	16.25%	3.50%	7.33%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Air Products	2,051,700)	1,817,600)	1,442,400)	2,962,400)	694,000)	1,280,800)
Adjusted total assets	25,053,400)	18,827,600)	19,056,900)	18,292,700)	17,862,600)	17,251,900)
Profitability Ratio
Adjusted ROA²	8.19%	9.65%	7.57%	16.19%	3.89%	7.42%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

2020 Calculations

¹ ROA = 100 × Net income attributable to Air Products ÷ Total assets
= 100 × 1,886,700 ÷ 25,168,500 = 7.50%

² Adjusted ROA = 100 × Adjusted net income attributable to Air Products ÷ Adjusted total assets
= 100 × 2,051,700 ÷ 25,053,400 = 8.19%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Air Products & Chemicals Inc. adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Air Products & Chemicals Inc. (NYSE:APD)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Air Products & Chemicals Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Air Products & Chemicals Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)